Should former Barnfield boss Sir Peter hand back FE knighthood after inadequate rating?

Troubled Barnfield College has been described by Ofsted as having “no key strengths” — prompting question marks over whether former principal Sir Peter Birkett deserved his 2012 knighthood for services to FE and the academy movement.

Luton South MP Gavin Shuker blamed the college’s problems — the most recent of which was a damning inadequate grading — on the federation of academies which Sir Peter set up from 2007.

“Sir Peter Birkett took an outstanding college, starved it of resources and focussed on building a network of schools that sadly has ended up with an inadequate college and that’s a tragedy,” said Mr Shuker.

He added that the honours system “recognises achievements — but these achievements have been shown to be nowhere near as effective as we originally thought.”

Indeed, Ofsted’s report told how “success rate data are now more reliable than at any time during the past year, following a period in which a number of factors contributed to an over-inflation of the performance of the college.”

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Sir Peter’s knighthood had already proved contentious, with an online petition in April calling for him to rescind the honour winning the support of 183 people.

Although he left the college in July 2013, audits later uncovered a £1m funding overstatement, leading to claims of ghost learners, investigations by the Skills Funding Agency and Education Funding Agency and an FE Commissioner visit.

Sir Peter declined to comment on his knighthood.

Barnfield college
Barnfield college

Barnfield’s commissioner first after Ofsted blow

Barnfield College is set to become the first college to receive two full visits from FE Commissioner Dr David Collins, following an inadequate Ofsted inspection result.

The Luton-based college went from a grade three to four rating, with inspectors finding the college had “no key strengths” while viewing success rates, teaching and learning as inadequate.

The Department for Business, Innovation and Skills (BIS) said the result would trigger a visit from Dr Collins, whose visit in January last year followed a Skills Funding Agency (SFA) assessment of inadequate for financial control at the college.

A BIS spokesperson told FE Week: “The FE Commissioner’s assessment of Barnfield College in January 2014 recommended new financial regulations and controls be put in place urgently and changes were made to the governance and leadership.

“The commissioner has found progress in addressing financial concerns. He is now due to re-assess the college, focusing his attention on quality of provision and the actions put in place to address the issues identified by Ofsted.”

Robin Somerville, chair of Barnfield College, which is due to submit plans to BIS to split from the federation of academies built up under former leader Sir Peter Birkett from 2007, said governors “fully accepted” Ofsted’s findings.

“This is an unacceptable failure by a significant majority of the previous management, governors and teaching staff,” he said. “On behalf of the college, I have apologised to students for that failure.”

It is the latest in a series of blows for the college following government probes with auditor KPMG finding it had overclaimed more than £1m for provision that had never happened, leading to allegations of ghost learners.

Meanwhile, Dr Collins later identified a “general feeling among all levels of the organisation that the college has been relatively neglected in the previous director general/CEO’s [Sir Peter’s] pursuit of attempting to grow the overall federation into a national business”.

And Luton South MP Gavin Shukler said the Ofsted rating could be blamed on Sir Peter’s focus on creating the Barnfield Federation academy chain.

“The criticisms in the report reflect how poor management decisions have affected teaching and staff,” he said.

“We’ve still got brilliant staff there but they need additional resources and they need steady management which we’ve not had in recent years.”

Sir Peter, who left Barnfield in July 2013, said: “It saddens me to read the Ofsted report.”

He added: “I am not sure how this has been allowed to happen and hope senior management have now put strategies in place to rectify the points raised in the report and I wish them well for the future.”

Lydia Richards, University and College Union regional official for Eastern and Home Counties, said: “The poor leadership and financial mismanagement identified last year at Barnfield College has evidently had a negative effect on overall performance, despite continued hard work and commitment from staff.”

Interim principal Monica Box is due to step down in March for Tim Eyton-Jones, currently principal of John Ruskin College, to take over.

Mr Somerville said Ms Box had “already started the urgent and robust work to correct the failings identified by Ofsted.”

And Mr Eyton-Jones said: “We will be implementing a range of robust and established quality improvement models as well as some innovative initiatives to support the turnaround.”

Please note that an earlier version of this poll was reset due to people being allowed to vote more than once. This issue has now been fixed and the poll reset to zero as of 1.30pm on Saturday, January 10.

Vote now: FE Week and Me photography competition 2014

The entries are in, the shortlist is finalised and it’s time for the winner of the FE Week and Me photography competition to be chosen. A judging panel made up of representatives from FE Week and NCFE took on the difficult task of selecting 15 finalists from more than 982 entries this year.

 FE Week and Me, a competition organised by FE Week in partnership with NCFE, challenged learners in FE and skills to submit a pictures that depicted student life in the, through the eyes of students.

 The winner from the photography student category will be chosen by public vote and will receive a Nikon D5100 Camera Kit and a work shadowing placement with a professional photographer. All that remains for you to do is check out the stunning images below and choose your favourite, then cast your vote in the FE Week and Me photography competition 2014. The voting box can be found at the end of this article.

To download: The Finalists FE Week and Me Photography Supplement click here

1.Emily-Witham
Emily Witham, 16. Photography diploma level three. City College Norwich
2. Haryy-Collins
Harry Collins, 16. BTec level three photography. Fareham College, Hampshire
3. Jessica-Lacey
Jessica Lacey, 18. UAL level three extended diploma art and design – photography. Doncaster College
4. Kloe-Watts
Kloe Watts, 16. UAL art and design photography level three. City College Norwich
5.-Mae-Cobby
Mikaela Mae Cobby, 18. Photography level three extended diploma. Stoke-On-Trent College
6. Michael-Fleming
Michael Fleming, 17. Level two media. Northbrook College, West Sussex
7.-Millie-Wul-Barrett
Milliecent Ruhl-Barrett, 17. UAL level three extended diploma art and design – photography. Norwich City College
Rachael Bartleet, 17. A2 photography. St Brendan’s Sixth Form College, Bristol
9.-Ray-Ann-Collins
Ray-Anna Collins, 17. BTec extended diploma photography level three. Grimsby Institute
10.-Stephanie-Murton
Stephanie Murton, 19. BTec level three extended diploma in photography. Stoke-on-Trent College

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Apprenticeship funding question remains unanswered as government consults further on PAYE and credit account

The future of apprenticeship funding remains unclear despite the government this morning responding to the results of a three-month technical consultation last year.

The government has pledged further “collaborative” consultation after neither of the proposed mechanisms to fund apprenticeships emerged as a clear favourite.

Funding for apprenticeships is currently routed through providers, but in future funding is expected to be routed through employers — either, the consultation proposed, through the PAYE system or an apprenticeship credit account.

Skills Minister Nick Boles, writing in the response document, said: “Based on the feedback to the consultation, we have concluded that further detailed design work is needed before we can reach a final decision on which funding mechanism will be taken forward to meet our shared aim of more high quality apprenticeships, where employers hold the purchasing power. We will continue to undertake this further work with you, in an open and collaborative way.”

Nick Boles MP
Nick Boles MP

The technical consultation, which ran from March 6 and attracted 1,459 responses, followed a 2013 consultation that uncovered wide-spread opposition to employer-routed funding.

Mr Boles added that the decision to give employers direct control of apprenticeship funding was “non-negotiable” — but there was no restatement of the government’s commitment last year that the new funding mechanism would be put in place in 2016.

“If we are going improve and expand our apprenticeship programme further we must put employers in the driving seat — and give them control of both the design and funding of apprenticeships,” he said.

“I look forward to working with employer organisations and others to develop a funding model that is simple, transparent and easy for employers to use.”

However, the government’s pledge to commit £2 for every £1 of employer investment looks less certain with the consultation response revealing it would only be implemented from September on a “trial” basis, continuing the trials already underway.

A Department for Business, Innovation and Skills (BIS) spokesperson declined to comment on the ratio, but said: “We have not yet reached a decision on what the mechanism for routing funding to employers should be.

“As a result of the responses to the consultation we are keeping an open mind and considering all the options including what lessons we can learn from the funding model we are trialling with the trailblazers.”

Stewart Segal
Stewart Segal

Nevertheless, news that the Department for Business, Innovation and Skills (BIS) would be consulting further on the reform plans, which follows an apparent thawing on the idea from Mr Boles, were welcomed by the Association for Employment and Learning Providers (AELP) and Association of Colleges (AoC).

Employers made up 995 of the respondents, and AELP chief executive Stewart Segal said the decision to consult further showed “the government has heard the voice of employers”.

“We have been saying for some time that employers want to have the purchasing power in the programme and in fact they already do have that power,” he said.

“Most of the employers our members work with do not want to take on the administration and management of the government contributions and they will want to continue to work with the providers of their choice.”

Teresa-Frith-(2)-lab-supp
Teresa Frith

Mr Segal added AELP was working with BIS and the funding agencies to develop its own, simpler model that would “encourage more employers to become engaged”.

Teresa Frith, AoC senior skills policy manager, said: “We are pleased to see the government standing by its commitment to create a world-class apprenticeship programme and pledging to take its time to get the reforms right.

“It has taken on feedback from the consultation which raised concerns about the practicalities of fulfilling the principle of employer-routed public funding. More work needs to be done before this goes ahead.”

No one from BIS was available to comment on when further consultation would be taking place or how it would be carried out.

AACBAN-rolling

 

College steps in with A4e set to walk away from London prisons

A general FE college has stepped in after a major private provider pulled out early from London’s £17m prison education contract, FE Week can reveal.

Welfare-to-work provider A4e gave three months’ notice to the SFA in August that it was terminating its Offender Learning and Skills Service (Olass) contract for the Capital’s 13 prisons.

It agreed to carry on running the service for another two months after the Skills Funding Agency (SFA) failed to sign up a replacement provider to take on the contract by its original December deadline.

But the SFA has now confirmed that The Manchester College, which already holds the North East, North West, Kent and Sussex, and Yorkshire and Humberside Olass4 contracts, will take over for London prisons from next month.

An SFA spokesperson told FE Week: “Following the recent procurement exercise, we are pleased to confirm that The Manchester College has been successful and will be delivering the Olass contract in London with effect from February 1.

“The Manchester College will continue to work closely with the National Offender Management Service (NOMS), the SFA and the current London Olass provider to ensure a smooth transition for learners and staff.”

Peter Cox (pictured), director of commercial development at The Manchester College, said: “We are excited about the opportunity to expand our services into these additional establishments to raise the aspirations and skills of learners in custody, to help increase employability and reduce reoffending.”

A college spokesperson said it would take on all 600 staff currently employed by A4E on the London contract, through the transfer of undertakings protection of employment (TUPE) process.

Rod Clark, chief executive of the Prisoners Education Trust, said: “We’re delighted the uncertainty surrounding the future of the contract has come to an end for the sake of staff and learners.”

The SFA told FE Week in August that the three providers, other than A4e, to have won Olass4 contracts — the Manchester College, Milton Keynes College and Weston College — had been invited to apply to take over for London.

A4e won London’s Olass4 contract in August 2012 and had been expected to deliver the training until July 2016.

It had won the work with Kensington and Chelsea College having delivered all three of London’s previous prison education contracts since the Olass system was first rolled out across the country in 2006.

An A4E spokesperson said the company would continue to run its Olass4 contract for 14 prisons in the East of England.

Two thirds of providers fail to hit allocations

Two thirds of FE and skills providers failed to deliver their final 2013/14 Adult Skills Budget (ASB) allocation by a total of £111.8m, FE Week can reveal.

Skills Funding Agency (SFA) allocations data shows that 888 colleges and independent learning providers (ILPs) were earmarked a total of £2,210.7m ASB cash in June.

But FE Week research comparing these allocations with final funding figures for last academic year showed that while 217 providers got a total of £20.6m more than they had been allocated, and 79 met their allocation figure, 592 were paid a total of £111.8m less than their combined allocation figure.

And with SFA deputy director for funding systems Una Bennett having warned of incorrect claims by providers (see front), it is likely that the final overall figure could yet fall as funding is clawed back — meaning a potential rise in the number of providers paid less than their allocation.

Stewart-Segal-pic-cutout
Stewart Segal

Julian Gravatt, assistant chief executive of the Association of Colleges, said: “There are some big variances in the numbers and some big well-known companies have fallen short in their plans just as some colleges have. At the same time, underspends on apprenticeships need to be looked at alongside overspends on other education and training for adults.

“Things were complicated in 2013/2014 because there was a new SFA formula [funding calculation] introduced, the start of 24+ advanced learning loans, funding cuts averaging 15 per cent and the IT systems didn’t work properly.”

With the government viewing delivery of apprenticeships as a priority, it is likely that providers paid more than their allocations delivered more numbers than expected on the programme.

And when looking at SFA data showing just final funding levels versus the value of delivery per provider, those who did more training than they were funded for were likely to be running more non-apprenticeship — or non-priority — programmes than they had been allocated for.

Indeed, while the combined 2013/14 ASB final funding for colleges and ILPs was £2,164.8m, they actually delivered £2,230.6m-worth of training. It meant that providers delivered £65.7m-worth of unfunded training. It was a similar story in 2012/13 when there was £61.8m-worth of training delivered, but not paid for.

But in 2011/12, when the SFA allowed colleges to keep funding for which there had been no delivery, there was £91m of SFA cash given out despite no education or training — although the SFA reduced some allocations the following year to make up for the overpayment.

JUlian-Gravatt-cutout
Julian Gravatt

Stewart Segal, Association of Employment and Learning Providers chief executive, said: “The final figures for [2013/14] delivery show how complex the contract management system is. Around £65m of delivery was not funded even though some of this provision was priority delivery, such as programmes for the unemployed or English and maths.

“If we compare actual delivery of the ASB to budget [2013/2014 funding up to June last year], then a number of providers did not deliver their full contract value. During the year, many of these providers had increases in budgets, so they may well have delivered more than their original budgets, but did not reach their new contract limit.

“The frequent changes to budgets and the timing of the increases means that it is very difficult for providers to make the investment in expanding provision because of the time lag from recruiting new employers and learners.”

An SFA spokesperson said: “Applying our published performance management policy has meant that we have been able to fully fund all high-quality adult apprenticeship delivery including reported delivery above maximum contract values; discretionary learner support and 24+ advanced learning loans bursaries to support learners facing financial hardship to take part in learning; and, Esol (English for Speakers of Other Languages) protection (for colleges).

“Colleges and training organisations only retain funding for what they deliver and those that over-delivered on their other ASB did so at their own risk and the Performance Management Rules 2013 to 2014 clearly stated there would be no automatic payment for delivery above maximum contract values.”

Untitled-3Sources: SFA 2013/14 final allocations and SFA final funding year values

Learndirect records biggest ASB shortfall

Learndirect had the biggest shortfall in delivery of ASB provision for which it had been allocated SFA cash among all providers.

The ILP was given £6.4m less funding than it had been finally allocated for 2013/14 in June, when it was earmarked £129.3m by the SFA.

The two other ILPs with the greatest shortfalls were London-based Babcock Training Limited (£4m) and Sussex-based HIT Training (£3.2m).

Adrian Beddow, communications manager at Learndirect, said: “Like many providers we were tasked with supporting the government priority of apprenticeships. As a result, in 2013/2014, we saw more of our funding moving from adult skills into apprenticeships, at the start of the funding year as well as in-year.

Jill-Whittaker,Managing-Director,-HIT-Training

“The changes in-year meant we over-supplied on our ASB because the demand was there and we had already contracted out our funding allocation to our partners. However, in our apprenticeships delivery, the in-year changes proved challenging given the timeframes we were working with. This, together with the introduction of 24+ advanced learning loans which decreased the size of our target audience for much of the year, meant we fell short of our final allocation.”

Jill Whittaker (pictured), managing director of HIT Training, which was allocated £26.2m and given £23m, said: “In 2013/2014, and as a result of increased demand for its training provision, HIT Training exceeded the original [ASB] contract [allocation], dated July 2, 2013, by £6.2m.

“The second version of the contract, dated January 8, 2014, was exceeded by £1.7m.

“Further variations to contract, including increases in apprenticeship and traineeship allocations, were received in March 2014 and June 2014. Apprenticeship and traineeship demand cannot be turned on at short notice. For many years AELP has emphasised the role of training organisations in raising awareness of apprenticeship programmes — this takes time. While we made our best efforts to stimulate additional demand, we were unable to achieve the entire contract value.”

Babcock Training Limited declined to comment. It had been allocated £30.5m and given £26.5m.

Apprentice subcontracting behind lack of delivery

 

The three colleges with the greatest delivery shortfalls on their 2013/14 ASB allocations missed out on a total of £10.2m SFA cash.

Newcastle College Group (NCG) failed to deliver £4.3m, Birmingham Metropolitan College (BMet) £3.5m, and Hull College £2.4m.

Chris Payne, group director of planning and performance at NCG, which was given £31.7m by the SFA having been allocated £36m, said: “Much of this shortfall was where NCG was awarded additional apprenticeship contract value bid for in-year for delivery via subcontractors.

“However, we could not find sufficient numbers of contractors who would have been able to deliver training of the right quality.

“It was not included in our budgets at the start of the year, so there is a very limited impact on last year’s budget and there is no impact on long-term allocations this year.

“In some areas, such as discretionary learner support, we invested an extra £1m which the SFA has funded and which balances out some of the under-spend on apprenticeships.”

A spokesperson for BMet, which was given £21.3m having been allocated £24.8m, said: “The changed funding position for BMet’s ASB is the result of consolidation following the merger between Stourbridge College and BMet in 2013.

“Our financial position and balance sheet remain strong and we have recently been graded outstanding for financial health by the SFA. The college offers a broad range of adult provision, with a strong focus on employability skills.”

A spokesperson for Hull College, given £16.7m having been allocated £19.1m, said: “The shortfall in adult funding delivery in 2013/2014 is solely attributable to the group’s strategic plan in-year to reduce the volume of subcontractors delivering adult apprenticeships.”

‘Extraordinary’ former Lambeth College vice principal dies, aged 68

A former London college vice-principal described by ex-colleagues as “a woman of extraordinary energy and judgement” has died, aged 68.

Tributes poured in from ex-colleagues of Ruth Nixon (pictured), who was assistant principal and vice-principal of Lambeth College between 1994 and 2010.

She died peacefully following a sudden illness on Friday, January 2.

In a joint statement, Adrian Perry, the college’s principal from 1992 to 2002, and Dame Lorna Boreland-Kelly, college chair of governors from 1992 to 2013, said: “Ruth Nixon was a woman of extraordinary energy and judgement.Ruth-Nixon

“She came to Lambeth College at its establishment from South London College; as the college became organised on a unified basis, she took increasingly senior roles, with a particular emphasis on curriculum and quality, the part of the college that actually affected students, who remained at the top of her priorities.

“As successively assistant principal and vice principal, she established robust systems that radically raised pass rates and reduced drop-out. Because of her work, many more students gained qualification and moved into employment and higher education.

“Ruth was self-effacing, working in the background to get the best outcomes, happy for others to make the speeches and take the credit.”

Mrs Nixon, who lived in Blackheath, London, and is survived by her husband and two sons, first entered the FE workforce teaching English as a Second Language (ESL) at Cheetham FE Centre, Manchester, from 1971 to 1972. She taught ESL and literacy at Bradford College, Manchester University, Sheppey School, in Kent, and South East London Technical College (SELTEC) over the next 15 years.

Mrs Nixon was appointed deputy head of humanities in 1987 at South London College, which merged with Vauxhall College and Brixton College of Further Education to form Lambeth College five years later.

Richard Chambers, who was the college’s principal from 2005 to 2011, said she was an “unsung hero”.

“I worked with Ruth at Lambeth College for the last five years before she retired and before this at South East London College ,” he said.

“She was a central part of a hugely pioneering bunch of colleagues leading curriculum reform to make colleges more suitable places for people with modest educational achievements from their schooling days.

“By the time I caught up with her again at Lambeth she had, through her wisdom, vast depth of expertise and an unparalleled work ethic, shaped and maintained a college course offer which was what local people needed and wanted.

“Ruth’s unassuming quiet nature was the mark of a selflessness which made her such a great public servant and educationalist.

“I extend my deepest sympathies to all of her family.”

Mark Silverman, the current Lambeth College principal, said: “Although Ruth and I didn’t work together at Lambeth, it’s clear from the way that our staff have reacted to her passing that Ruth was a woman of tremendous passion and determination who put learners at the heart of the college and was a great encourager and enabler of staff.

“Ruth will be sadly missed by many of our staff who have very fond memories of her. Our thoughts are with her family and close friends at this time”.

 

Caretakers’ honour as New Year awards bring wide-ranging FE and skills recognition

The new year got off to a flying start for FE and skills with more than 30 sector figures named in the 2015 Honours list.

And it wasn’t just the well-known names and faces who were honoured — the contribution all staff make to learners was recognised, not least with Christopher Willder, groundsperson at Brooksby Melton College, and James Jackson, caretaker at Woodhouse College, in line for British Empire Medals (BEMs).

The sector also gained a new Dame in Nestle UK boss Fiona Kendrick following her contribution to skills development, four CBEs, 11 OBEs, a dozen MBEs and a total of seven BEMs.

Click here to view the Honours article (pictured above) from edition 123 of FE Week

Association of Colleges chief executive Martin Doel congratulated those who were honoured, paying particular attention to the six principals listed.

He said: “Principals work tirelessly for their college, students and local community and receiving such a high honour is a sign of how important their work is considered to be.

“I offer my congratulations to everyone who received an award — it is very well deserved.”

An Association of Employment and Learning Providers (AELP) spokesperson said it was “really encouraged” to see the efforts of so many from the FE sector recognised.

“AELP extends its warmest congratulations to its members who have received awards and to others in the FE and skills sector,” he said.

National Institute of Adult Continuing Education chief executive David Hughes said the honours helped “highlight the many personal, social and economic benefits FE and skills brings”.

Click here for further FE Week honours coverage, including quotes from those not featured in edition 123, such as apprenticeship ambassador and CBE recipient Jason Holt.

Counting the cost of Labour’s plans to reform apprenticeships

Labour’s apprenticeship proposals could cost taxpayers as much as £11.7bn over the course of the next parliament, according to Treasury research.

Costings of 28 Labour policies were published on Monday (January 5), including three on apprenticeships and a further four affecting the wider FE and skills sector (see below). They suggested Labour’s spending plans would include £1.5bn on apprenticeships in the first year alone.Osborne-screen-shot

Chancellor George Osborne (pictured right) said: “This is an objective, thorough, and detailed cost analysis of Labour’s policy agenda.”

But in Labour’s rebuttal, published the following day, Shadow Chancellor Ed Balls (main pic, above), described the costings as “riddled with untruths and errors” and “a political smear based on false assumptions”.

Dr Lynne Sedgemore, 157 Group executive director, said exchanging “hypothetical figures” was “unhelpful” especially when both main parties support broadly similar policy themes in regard to skills — an increase in apprenticeships, more training for those out of work and the establishment of new types of institution.

“If the cost of policies is to be a focus for the election campaign, we hope that the clear return on investment — both economic and social — delivered by a thriving, high quality skills system will also be factored fairly into the debate,” she said.

Association of Employment and Learning Providers chief executive Stewart Segal said: “None of these Labour policy options have been set out in any detail. The costings of these policy options are also fairly speculative and much will depend on the detail of the proposals.”

Lynne-Sedgmore-cutout
Dr Lynne Sedgemore

He added: “The positive return on investment of these programmes to the UK economy has been proven time and again so it not just a question of cost.”

A spokesperson for the Association of Colleges said: “It is important that whoever forms the next Government is mindful of what colleges need.”

Labour’s apprenticeship policies costed by the Treasury were, firstly, plans to make all apprenticeships level three and above and to increase the minimum duration from one to two years for non-technical apprenticeships and three years for technical ones.

The Treasury’s costings for 19+ apprenticeships, based on the current apprenticeship funding system, put the price tag at £3.8bn in the next parliament, and £680m in the next year.

However, the Labour rebuttal document said their policy was about quality in apprenticeships, not quantity.

“In reality it would not cost any additional money… because it makes no commitment on the total number of apprentices,” the document said.

“Our policy is about requiring that short courses that do not meet a minimum standard are not misleadingly branded as apprenticeships.”

Labour has, however, said it would like the number of school leavers applying for apprenticeships increase to match the number starting university by 2025.

And on this, the second costing assumes 185,000 18-year-olds start university in 2025 (based on projections from the Department for Business, Innovation and Skills), and apprenticeship costs remain the same as 2013/14. The Treasury costing therefore estimates the total cost over the next parliament, will be £5.5bn and £710m in 2015-16.

Labour rejected this, saying: “Ed Miliband made clear in his speech to Labour Party Conference September 2014 that this is a national goal for 2025, not a policy for immediate implementation.”

Labour has also said it would ensure that all public procurement contracts would include a requirement to hire one apprentice for each £1m awarded in the contract. The third Treasury costing puts forward three financial outcomes for this.

The first assumes that any costs to the employer, such as salary, supervision, recruitment and administration are passed on to government by raising the contract price — resulting in a bill of £1.1bn to £2.4bn over the next parliament and up to £234m in the first year.

The second assumes only the apprentice’s salary is reclaimed, costing up to £1.1bn over the next parliament and £67m to £107m in the next year.

The third assumes the employer “nets off” the productive contribution the apprentice makes to the business and the savings on fully trained workers’ salaries, from the apprentice’s salary, but still passes other costs on to Government, costing up to £1.4bn over the next parliament and up to £144m in the next year.

However, Labour said: “This policy would not lead to any additional spending on procurement over existing procurement budgets. Instead, this policy is about changing the requirements on the companies ahead of bidding for contracts and changing the way companies recruit rather than increasing costs.”

£1.4bn to build100 new UTCs

One of the policies costed by the Treasury is a suggestion made by Lord Adonis in his review, Mending the Fractured Economy: Starter State, Better Jobs, published in July, that 100 new University Technical Colleges (UTCs) should be opened by 2020.

The Treasury costing estimates a total of at least £1.419bn by 2025, assuming all new UTCs are up and running by 2020.

By far the biggest cost laid out in the document would be the capital cost to construct buildings, which the costings calculate at £1,315m up until 2022-23.

The total cost in the next Parliament (2015 until 2020) would be £1,112.18m.

However, Labour denied the idea of opening 100 new UTCs was even official Labour policy.

“What the government has costed is an idea proposed in the Adonis Review, which does not constitute Labour Party policy,” Labour’s rebuttal document said.

It also dismissed the costing figures as “wrong,” adding: “The Government has said itself that it would open more UTCs and we support this policy since it will take place within existing capital budgets.”

Detailed breakdown of the Treasury’s controversial financial estimates

All FE teachers must be qualified or working towards it

Treasury costing says:

  • If costs include training new teachers and existing ones without qualifications (who should have completed by 2017/18) total cost over four years would be £433m for the FE sector
  • Including school teachers, the total cost of ensuring all teachers were qualified in 2015/16 would be £177m (£122m for FE, £55m for schools)

Labour says:

“This costing is wrong.

“We would manage this within existing budgets, just as the last Labour government did.

“Our policy would ensure that over time FE lecturers would train in greater numbers, it is wrong to assume that it would be any specific number in 2015-16.”

All Jobseekers to be assessed for maths and English and IT and required to take up training if they fall below a certain standard

Treasury costing says:

  • If jobseekers need level one English and entry level three maths, each qualification costs £714 and around 1,062,000 claimants needed screening, it would cost £513m in the first year
  • This figure includes the cost of screening claimants and providing training for those who need it

Labour says:

“Funding is already provided to train adults who lack basic skills, so this policy will not impose additional costs.

“The government’s own Skills Funding Statement sets out that funding is already available for adults in receipt of benefits where skills training will help them into work.”

Out of work benefits for 18 to 21s replaced with a new youth allowance dependent on young people being in training. This would be means tested and apply to those without a level three qualification

Treasury costing says:

  • If youth allowance is paid at £57.35 per week, like JobSeeker’s Allowance and uses the same means test as university funding (tapering from £25,000 to £42,000), and if the numbers of unemployed people aged 18 to 21 remain the same, the policy would cost £1.1bn to £1.4bm
  • However, the Treasury also estimates the policy would save £20m

Labour says:

“The Tories have examined only a limited range of options for how to deliver this change. We have been clear that there will be no proposals for borrowing in our manifesto, and that we will deliver this policy in a cost-neutral fashion.”

Contingency plan assurance from SFA after latest Hub breakdown

The Skills Funding Agency (SFA) has assured providers that it has a contingency plan after the Hub suffered the latest in a series of breakdowns.

The online data collection system failed on Monday (January 5) — less than 48 hours before the Individualised Learner Record (ILR) R05 (fifth return of the academic year) deadline. Among the problems suffered by the Hub have been breakdowns in August for R12, September for R13 and December for R14.

And complaints about the latest breakdown were posted on the SFA’s Feconnect online forum and one disgruntled user called for an extension to the deadline, which was not granted by the SFA.

An SFA spokesperson told FE Week: “We have a contingency plan in place which we will invoke if we experience sustained problems with our data collection systems.

“We will inform providers of the move to the contingency plan through existing SFA communication channels.”

She added channels would include the regular SFA Updates, www.gov.uk, Twitter (@sfadata, @skillsfunding) and Feconnect.

The SFA initially kept the old online data collection (OLDC) system running alongside the Hub, after its launch in July, encouraging providers to submit returns through both systems.

However, the OLDC was shut down at the end of October prompting sector concern, reported by FE Week in November, that there was no back-up plan if the Hub broke down.